OnTheMarket sees price shrink despite plans to overcome Rightmove

October 14, 2019
Share this Post: 

OnTheMakret has claimed that it gets agents a higher marketing yield than rival Rightmove.

Investors appear to disagree - when the claim was made, OTM’s share price dropped over four percent while Rightmove’s rose by more than six percent.

The statement on yield came from Zeus Capital, a so-called ‘banking boutique’ which has in the past helped both OTM and Purplebricks float on the London Stock Exchange.

“On its standard tariff of £331 a month, OTM provides its advertisers 34 leads for every £100 spend: this is more than twice that of Rightmove” it says, suggesting that Rightmove in the first half of this year provided only 16 leads per £100 spend. 

Zeus continues: “We maintain our forecasts which we set on 26 September 2019. Strong cost control and increasing contracted monthly run-rate revenues support management’s indication that OTM should reach breakeven in [quarter two or quarter three] next year. In our view, once it has reach breakeven, OTM should trade on over £10,000 per advertiser (ie over £125 million).”

However, at the end of the recent trading, OTM shares hit just 80p - a drop of over four percent on one day alone, at the end of a week which saw the portal deliver what analysts suggest were mixed results for the first half of the year.

Read more here 

Join us November 12-15 for the Property Portal Watch Conference Madrid 2019.

Property Portal Watch Madrid Summit 2019

October 14, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Shutterstock 120120670
Zillow and CoStar Share Prices Shift on News of NAR Shock Settlement

The trajectories of real estate portals in the United States may be about to diverge as the National Association of...

Read More
Shutterstock 1454624438
U.S. Portal Operator OJO Labs Acquires The LEAD Syndicate

The U.S. PropTech operator OJO Labs has announced that it has acquired The LEAD Syndicate, a provider of teach solutions...

Read More
Onthemarket Employees
OnTheMarket PR Push Continues with Agent Signups and Roadshow

The UK's number three portal OnTheMarket (OTM) is definitely ramping up its PR in the early months of 2024 with...

Read More
Product Roundup 13March24
Product Roundup: FangDD, Yandex, Redfin, Realtor.com, Keyper, OneDome and MagicBricks

Another week, another big product roundup for portals and proptechs worldwide. Here's what we've spotted...   FangDD shares soar 80%...

Read More

Editor's Pick